Vinh Phuc Ready to Welcome New FDI Inflows

10:28:31 AM | 31/7/2020

The success of Vietnam in general and Vinh Phuc province in particular in controlling the COVID-19 pandemic and good economic recovery policies are attracting the attention of many foreign investors. With many attractive promotion programs and an open environment, Vinh Phuc is now ready to welcome the new wave of FDI inflows.

Vinh Phuc province’s initial success in preventing and fighting the COVID-19 epidemic has been recognized and highly appreciated. Spurred by its policies on continued improvement of the investment environment, the province is witnessing a golden opportunity for a fresh wave of foreign investment movement into industrial parks.

Using social networks to draw investors

The government of Vinh Phuc province emphasized that the province is trying to complete investment goals by assessing the social and economic development situation in the first six months of 2020. It will mobilize all resources to remove bottlenecks and create favorable conditions for business development.

Fully aware of the role of investment attraction and foreign economic activity, the province has focused on investment attraction, even during social distancing due to the COVID-19 pandemic. The provincial leaders used social networks, Zalo and telephone to urge responsible agencies to enhance advisory measures and instructions for investors. Therefore, according to the Vinh Phuc Department of Planning and Investment, although the investment value was much lower than that of the first half of 2019, it was still relatively positive. Foreign direct investment (FDI) fund was estimated at US$135.6 million coming from 14 fresh projects and 19 existing projects, and the domestic direct investment (DDI) fund was forecast at VND2.67 trillion, down 49.5% year on year, coming from 24 new projects and nine existing projects.

In fact, before the COVID-19 epidemic, foreign investors were tending to shift investment out of China due to the U.S.-China trade war. After the country basically controlled the disease, the wave of seeking foreign investment opportunities in Vietnam, including Vinh Phuc, became more and more vibrant with the presence of many world-leading corporations.

The province has carried out various reforms in investor support like reducing the time for business and investment procedures, deploying online business registration and publicizing policies and mechanisms on mass media. The province has focused on supporting enterprises and investors to deal with emerging hardships, from business establishment to business conditions, customs clearance and tax payment to facilitate business development, FDI attraction and social investment.

Mr. Le Duy Thanh, Deputy Secretary of the Provincial Party Committee and Standing Vice Chairman of the Provincial People’s Committee, said, given the complicated development of the pandemic across the world which is wrecking many domestic and foreign companies, many investors have still chosen Vinh Phuc as a reliable destination. This is a positive signal for the province.

Best support for investors

To build up investor trust, Vinh Phuc has focused on developing industrial park infrastructure, handing over clean land to businesses, and helping them to invest in the most convenient way.

Specifically, the province has carried out solutions to remove bottlenecks in public investment; sped up ground clearance for building industrial parks and urban areas, accelerated land auctions; resolutely reclaimed slow-moving projects; and intensified inspection of public duties and responsibility, among other things. The province has done everything to make itself a reliable destination for investors.

To achieve the goal of attracting 35 new projects each year and having 35 more projects going into operation to generate jobs for more than 6,000 local workers in the period 2020-2025 and selectively attracting investors and prioritizing hi-tech, high-quality and prestigious projects, Vinh Phuc will continue to introduce many solutions to improve investment attraction policies and build a transparent financial mechanism as well as investment socialization requirements, and facilitate favorable and fair conditions for domestic and foreign investors. The province considers FDI one major measure to revive the economy.

Currently, Vinh Phuc is among the top 10 provinces and cities of Vietnam with a robustly developed industry boosted by investors from 17 countries and regions around the world. With remarkable investment in infrastructure, transportation and industrial parks and abundant labor resources along with preferential mechanisms and policies to attract investors into all fields such as hi-tech agriculture, supporting industries, precision engineering, electronic components, travel, service, education and training, Vinh Phuc has now become a highly favored investment destination.

Nguyen Minh (Vietnam Business Forum)